Amazon Wholesale Business: The Complete Guide for Beginners (2026)

Amazon wholesale is one of the most reliable ways to build a profitable Amazon business. Unlike private label (where you create products) or arbitrage (where you hunt for deals), wholesale offers a systematic, repeatable model: buy proven products from authorized distributors and sell them on Amazon.

This guide covers everything you need to start an Amazon wholesale business from scratch—from setting up your accounts to finding suppliers, analyzing products, and scaling profitably.

What Is Amazon Wholesale?

Amazon wholesale is simple in concept: you purchase products in bulk from manufacturers or authorized distributors at wholesale prices, then resell them on Amazon at retail prices. The difference (minus fees) is your profit.

The basic flow:

1. Find a supplier (distributor or brand)
2. Open a wholesale account
3. Request their price list
4. Analyze which products are profitable on Amazon
5. Place orders for winning products
6. Ship inventory to Amazon FBA (or fulfill yourself)
7. Products sell, you collect profit
8. Repeat

Wholesale vs Other Amazon Business Models

Why wholesale is attractive:

• Lower risk: You're selling products with proven demand and existing reviews
• Repeatable: Once you find a profitable product, you can reorder indefinitely
• Scalable: Add more suppliers and products without hitting a ceiling
• Less creative work: No product development, photography, or listing creation

The tradeoff is lower margins than private label (typically 15-30% ROI vs 30-100%+) and competition on existing listings.

How the Economics Work

Before diving into the "how," understand the numbers that make wholesale viable.

Typical Wholesale Margins

At scale, those $4 profits add up. A seller moving 1,000 units/month at this margin makes $4,000/month profit.

Why Volume Matters

Wholesale isn't about finding one amazing product. It's about finding many decent products and scaling volume. Most successful wholesale sellers work with 10-50+ suppliers and sell hundreds of different SKUs.

This is why bulk analysis tools matter—you can't manually research thousands of products from supplier price lists.

Getting Started: Step-by-Step

Step 1: Set Up Your Amazon Seller Account

You need a Professional Seller Account ($39.99/month) for wholesale. The Individual plan's per-item fees make it uneconomical at volume.

What you need to register:

• Government-issued ID
• Bank account for deposits
• Credit card for fees
• Phone number for verification
• Tax information (SSN or EIN)

Step 2: Establish Your Business Entity

Legitimate suppliers want to work with real businesses, not hobbyists. At minimum, you need:

Required:

• Business entity (LLC or Corporation recommended)
• EIN (Employer Identification Number) from IRS
• Resale certificate from your state (for tax-exempt purchasing)

Helpful:

• Business bank account
• Business credit card
• Professional email (not @gmail.com)
• Simple website (even a one-pager adds credibility)

Step 3: Find and Open Supplier Accounts

This is where most beginners struggle. Finding suppliers takes persistence.

Where to find wholesale suppliers:

1. Online directories: ThomasNet, Wholesale Central, manufacturer "Where to Buy" pages
2. Trade shows: ASD Market Week, industry-specific shows
3. Cold outreach: Email and call brands/distributors directly
4. Reverse sourcing: Find profitable Amazon products, then track down their suppliers

Many suppliers reject Amazon sellers outright. Expect rejection—it's a numbers game. Apply to 50 suppliers, get approved by 10-15, find 3-5 worth ordering from.

For a deeper dive, see our guide on how to find wholesale suppliers for Amazon.

Step 4: Analyze Your First Price List

Once approved, suppliers send price lists—often spreadsheets with thousands of products, UPCs, wholesale costs, and MSRPs.

Your job: Figure out which products are actually profitable on Amazon.

This requires:

1. Converting UPCs to ASINs (Amazon's product identifiers)
2. Checking current Amazon prices
3. Calculating fees and potential profit
4. Evaluating competition and sales velocity

The smart way: Use a bulk scanning tool like RocketSource to process the entire list at once. Upload your CSV, get back profitability analysis for every product.

Our free UPC to ASIN converter handles up to 50,000 conversions per week—more than enough to analyze multiple supplier lists.

Step 5: Place Your First Order

Start small. Even if you find 100 profitable products, don't order all of them immediately.

First order guidelines:

• Pick 5-10 products with clear profitability
• Order minimum quantities (usually 6-12 units each)
• Total investment: $500-$1,500 for testing
• Prioritize products without heavy competition

Step 6: Prep and Ship to FBA

Products need to be prepped to Amazon's specifications before shipping:

• FNSKU labels on each unit
• Poly bagging for certain products
• Bubble wrap for fragile items
• Proper packaging per category requirements

Most sellers start DIY, then outsource as volume grows. Find prep centers in our FBA Prep Services Database—we've cataloged 140+ prep companies across the US.

Finding Profitable Products

Product selection makes or breaks wholesale. Here's what to evaluate:

Key Metrics

What to Avoid

• Gated categories/brands: You can't sell without approval (often unobtainable)
• Hazmat products: Extra complexity and fees
• Products with IP complaints: Legal risk
• Items with heavy price competition: Everyone racing to the bottom
• Slow sellers: High BSR = slow sales = storage fees

Understanding Fees

Fees determine whether a "good" deal is actually profitable. Underestimate fees and you'll lose money.

Amazon Fee Types

For a complete breakdown, see our Amazon seller fees guide and FBA fee calculator guide.

Scaling Your Wholesale Business

Once your foundation is working, growth comes from:

1. Adding More Suppliers

Each new supplier = new price lists = new opportunities. Aim to add 2-3 quality suppliers per month.

2. Negotiating Better Terms

As your order volume increases, negotiate:

• Lower prices (volume discounts)
• Extended payment terms (net 30, net 60)
• Drop-ship capabilities
• Early access to new products

3. Systematizing Operations

• Product research: Train VAs to run initial scans
• Ordering: Create reorder systems based on velocity
• Prep: Partner with reliable prep centers
• Analysis: Build dashboards to track supplier performance

Common Mistakes to Avoid

1. Buying before analyzing
Never order from a supplier without scanning their full price list. The best-looking products aren't always the most profitable.

2. Ignoring competition
A 50% ROI means nothing if you can't win the Buy Box. Check competition levels before ordering.

3. Underestimating fees
Include ALL costs: referral fees, FBA fees, prep, inbound shipping, storage.

4. Over-ordering initially
Start small, validate, then scale. Don't tie up capital in unproven products.

5. Chasing restricted brands
Some brands actively prevent Amazon reselling. Don't waste time on products you'll never be able to list.

Tools for Wholesale Success

Is Wholesale Right for You?

Wholesale is a good fit if you:

• Want a systematic, repeatable business model
• Have $1,000-$5,000 to start
• Are comfortable with 15-30% ROI (vs higher-risk models)
• Can dedicate 10-20 hours/week initially
• Like data and analysis over creativity

Wholesale may not be right if you:

• Want to build a brand with long-term equity
• Only have a few hundred dollars to start
• Want passive income (wholesale requires active management)
• Prefer creative work over spreadsheet analysis

Getting Started Today

1. Set up your Professional Seller account if you haven't already
2. Register your business entity and get your resale certificate
3. Start applying to suppliers—expect rejection, it's normal
4. Sign up for RocketSource free to analyze your first price lists (50,000 conversions/week included)
5. Place a small test order with your best-looking products
6. Learn, iterate, scale

Frequently Asked Questions

How much money do I need to start Amazon wholesale?

Plan for $1,000-$5,000 initially. This covers business setup (~$200-$500), initial inventory ($500-$3,000), and tools/supplies. You can start smaller, but you'll be limited in what suppliers will work with you.

How long until I'm profitable?

Most sellers see their first profits within 30-60 days of their first shipment arriving at FBA. Reaching meaningful income ($1,000+/month profit) typically takes 3-6 months of consistent effort.

Do I need a warehouse?

Not initially. Most beginners work from home or ship directly to prep centers. As you scale past $50,000/month, dedicated space becomes worthwhile.

Can I do wholesale part-time?

Yes. Many successful wholesale sellers started part-time (10-15 hours/week) while employed elsewhere. The business model is flexible—you can analyze price lists and place orders on your schedule.

What categories are best for wholesale beginners?

Grocery, Health & Beauty, Home & Kitchen, and Toys are popular starting points. Avoid electronics (thin margins, high returns) and clothing (size/fit complexity) initially.

Next Steps

• How to Find Wholesale Suppliers — Detailed guide on sourcing suppliers
• Amazon Seller Fees Breakdown — Understand every fee before you sell
• Free UPC to ASIN Converter — Start analyzing products today
• FBA Prep Center Database — Find prep services near you

Ready to analyze your first supplier price list?

Start Free with RocketSource →

Convert up to 50,000 UPCs per week, access our FBA Prep Database, and get profitability analysis for every product—no credit card required.